Government to Limit Bank Overdraft Fees

The new rule announced by the Consumer Financial Protection Bureau is estimated to eliminate $5 billion of such fees annually.
Government to Limit Bank Overdraft Fees
Credit cards in Atlanta, Ga., on Jan. 18, 2024. Mike Stewart/AP Photo
Wim De Gent
Updated:
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Banks will be severely restricted in charging overdraft fees starting October next year, owing to a new ruling announced by the Consumer Financial Protection Bureau (CFPB) on Thursday.

The CFPB said the rule closed what it called an “outdated” legal loophole that exempted overdraft loans from lending laws, allowing the banks to charge the current fees.